Chancellor update: Furlough and loan schemes extended, plus date for Spring Budget set

The update followed the news that millions of Britons will remain in Tier 3 until the end of the year, affecting businesses and individuals up and down the country.

Furlough scheme

The extended furlough scheme, which was first launched back in March of this year in a bid to protect jobs, will see the government continue to pay up to 80% of eligible employee’s wages until the end of April 2021, providing certainty for millions.

The government will continue to pay 80% of the salary of employees (up to a cap of £2,500) for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.

More information can be found on the Government’s website, which you can access by clicking here.

Loan schemes

Further to the extension of the furlough scheme, the Governments loan schemes – namely the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme – have also been extended.

Businesses facing financial difficulty as a result of the implications of the COVID-19 restrictions will now have until the end of March to access the Government’s loan schemes.

These schemes, which were otherwise due to close at the end of January 2021 are intended to support businesses financially, and ensure they have the necessary funds needed to grow and recover.

Spring Budget

Speaking at the House of Commons, the Chancellor also confirmed the Budget will take place on March 3^rd, 2021, when he is expected to provide an update on the overall health of the economy, the Office for Budget Responsibility (OBR) forecasts and an update on the Government’s COVID-19 recovery plans.

If you need further details regarding any of the schemes available, please do not hesitate to get in touch – we are here to help.